As the United States celebrates its 250th anniversary, wealth inequality has ballooned to a historic high. Elon Musk just became the world’s first trillionaire, and a new class of billionaires is soon to be minted as AI companies prepare to go public. And while some leaders want you to believe this type of extreme wealth embodies the enduring promise of the American dream, that couldn’t be further from the truth.
In fact, the Founders were deeply worried that concentrations of wealth would corrode self-governance and hollow out the republic from within. In their study of history, they saw how wealth inequality fueled political division, class conflict, and social unrest, eroding governance and ultimately contributing to failed states like the Roman Empire.
James Madison’s Federalist, Number 10 explicitly links political instability to economic disparity, citing the inherent tension between property owners and non–property owners. Madison saw a role for government to address economic inequality in his 1792 essay Parties, noting that it should do so “by political equality of rights ... and by withholding unnecessary opportunities from a few, to increase the inequality of property, by an immoderate, and especially an unmerited, accumulation of riches.” Madison warned that if the state favors financial speculation, it creates an artificial aristocracy that distorts public policy and subverts democratic representation.
Thomas Jefferson was even more full-throated in his warnings about concentrated economic power. Jefferson worried powerful employers could coerce workers’ votes, thus limiting their democratic power. In an 1816 letter, Jefferson wrote, “I hope we shall take warning from the example [of England] and crush in its birth the aristocracy of our monied corporations which dare already to challenge our government to a trial of strength and bid defiance to the laws of our country.”
Jefferson believed a concentrated financial class would inevitably capture government institutions, transforming a republic of equals into a playground for the wealthy. Because of this, he championed structural limits to inequality, for instance by advocating for the abolition of laws that kept massive estates intact across generations to ensure wealth was continually broken up and redistributed through inheritance. He even authored two laws as a Virginia state legislator banning feudal inheritance practices that were in place across Europe.
Today, the Founding Fathers’ worst fears are playing out in front of our eyes.
Alongside Musk, the newly minted trillionaire, 300,000 U.S. households—those worth $50 million or more, in the top 0.2 percent—control $40 trillion, an amount comparable to the net worth of the 256 million Americans who make up the bottom 80 percent. And just as the Founders warned, this concentrated wealth is actively eroding our democracy and economy. Under our current tax code, wealth begets more wealth, and that wealth is in turn wielded to amass extraordinary power.
The American dream of working hard to get ahead looks very different for billionaires. Sure, there is an element of hard work, but it’s the system created by and for the ultrawealthy that underpins this financial success. Take Musk as an example. His companies have benefited from at least $38 billion in government contracts, subsidies, and tax breaks, with billions more guaranteed in the years ahead.
Our tax dollars built the foundation for Musk’s accomplishments, and now he owns the penthouse. And here’s the kicker: After sucking up all those public dollars, Musk can exploit our tax code to choose whether he gives anything back at all to the society that trained the scientists and built the infrastructure that enabled him to accumulate such a fortune.
That’s because under our current system, billionaires like Musk are able to pay very little—and sometimes nothing at all—in federal income taxes, while ordinary workers pay tax on every paycheck. Our current tax system largely shields wealth held in assets like stock from taxation, transferring the cost of running our society onto you and me while empowering Musk to accumulate the kind of wealth and political power that corrupts democracy itself.
That type of extreme wealth is then wielded to reshape markets and ensure policy outcomes that will protect and expand this financial and political dominance. Extreme wealth concentration has eroded the “one person, one vote” principle underpinning American democracy. In 2024, for example, Elon Musk personally financed the Trump campaign’s ground operations and gave individual Trump voters $1 million per day, a legally questionable scheme that some experts argued amounted to paying for votes.
That same year, 150 billionaires collectively spent a record-breaking $2 billion on federal races, and many have been rewarded with positions of real power in the government. Trump empowered Musk to gut essential workers and services through DOGE while securing new federal contracts and ending regulatory actions that threatened $2.3 billion in potential liabilities for his companies. Trump selected Cabinet members from the top 0.0001 percent of America, and his signature tax law will reward the richest 1 percent of Americans with $121 billion in net tax cuts in 2026 alone. Is it a surprise then, that in the first 16 months since Trump was reelected, the collective fortune of America’s 974 billionaires grew by $1.96 trillion, or 30.6 percent?
Today’s extreme wealth concentration is precisely the oligarchic threat the Founders envisioned. The American dream cannot survive when unlimited wealth for a few destroys opportunities for the rest of us.
A crisis of this scale calls on us to reflect the courage that the Founders displayed in declaring independence from the entrenched power of the British Empire. We must stop pretending that merely calling for the ultrawealthy to pay their “fair share” in order to meet certain revenue targets is sufficient within a tax system that is itself so unfair and unjust.
Instead, we must declare our own independence from the influence of the oligarchy by pursuing a set of reforms that are targeted toward reducing their power and building up our own. That means using tax policy as a way to reduce the wealth of the ultrawealthy by aggressively taxing their wealth, incomes, and estates. Doing so is essential for constructing a new system that generates the revenue we need for rebuilding the working class with programs that benefit working families, such as universal childcare, affordable housing, and climate-resilient infrastructure. We must also deploy policy tools to break up the dangerous concentrations of power threatening our economic growth, democracy, and climate.
Reining in billionaire control is incredibly popular: 77 percent of voters support raising taxes on the ultrawealthy, including 65 percent of Republicans and 75 percent of independents. Three in five (62 percent) prefer a candidate who supports raising taxes on billionaires, versus just 12 percent who prefer one who opposes it—a 50-point gap. Among Democratic primary voters, that gap widens to 79 points (83–4). This is because voters are living the consequences the Founders warned of—they cannot afford housing, health care, childcare, or other basic needs. They yearn for the upward mobility of previous generations. The American dream isn’t just fading—it is being erased by billionaires who are actively enriching themselves at the expense of the rest of us. They wield their extreme wealth as weapons, bending our democracy to their own agenda like kings—and as the Founders foretold.
Using the tax code to break up this concentrated wealth and power isn’t radical, it’s actually our founding-era orthodoxy. It’s time for our leaders to tax greed.
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